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Can sustainable investing provide good financial returns and are there any performance studies?

Curious about sustainable investing

Can sustainable investing provide good financial returns and are there any performance studies?

Sustainable investing can provide good financial returns, and there have been several studies that have looked at the performance of sustainable investment strategies. Some studies have shown that sustainable investing can provide similar or better returns compared to traditional investing, while others have found that it may underperform in certain market conditions or over certain time periods. However, it's important to note that past performance is not a guarantee of future results, and there is always some level of risk involved in any investment.

One example of a study is the analysis conducted by Morningstar in 2020, which found that sustainable funds outperformed traditional funds during the first quarter of 2020, when the global market was hit by the COVID19 pandemic. Another study by MSCI found that companies with high environmental, social, and governance (ESG) ratings had higher profitability and lower risk compared to those with lower ESG ratings.

It's important to note that the performance of sustainable investments can vary based on the specific investment strategy, the market conditions, and other factors.

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